Scali Rasmussen Principal Jasmin Bhandari is recognized in the 2024 Lawdragon 500 X – The Next Generation guide. This seminal guide honors the burgeoning legal talent infusing traditional and innovative practices with fresh energy and forward-thinking perspectives.

Kyle Coleman recently became a first-time dealer principal after 18 years working in retail automotive. His acquisition is the foundation for a group he aims to grow to 40 rooftops over the next 15 years.

For the last two or three years, few of Withum’s dealership clients looked at their expense structures, Stuart McCallum, leader of the tax advisory firm’s dealership services practice, says. Dealerships were making money hand over fist and didn’t feel the need to conserve money. Those days are gone.

If you’ve held on to your dealership to enjoy the historically high profits of the last few years but now you’re thinking of selling, the market has changed. Keep that in mind as you prepare to sell. James “J.T.” Taylor, managing director, automotive at Truist Securities, has advice for dealers thinking of selling their business in today’s market.

The dealership world has just come off two of the most profitable years in the industry’s history. The conditions that created that profitability are gone, however, and those looking to acquire a dealership are faced with the question of how to determine what the fair price for a franchise is.

The Department of Labor (“DOL”) recently announced its final rule that increases the minimum salary requirements for employees to qualify for exemptions from minimum wage and overtime pay requirements under federal law effective July 1, 2024. This has raised questions and introduces the possibility of confusion for California employers who must navigate both federal and California law to determine and apply the standard that is most employee friendly. Not surprisingly, California law is more employee-friendly in this area because it has a higher salary requirement for the exemptions to apply.

Since 2020, California law (specifically Code of Civil Procedure section 1281.97) has required employers to pay arbitration fees quickly or face harsh consequences. A check getting lost in the mail, or other minor delay exceeding 30 days after the due date has been found to be a “material breach” of the arbitration agreement under 1281.97, allowing the employee-plaintiff to withdraw from arbitration, pursue the case in court and seek sanctions against the employer-drafter.

On May 16, 2024, the U.S. Supreme Court decided Smith v. Spizzirri holding that federal courts have no discretion under Section 3 of the Federal Arbitration Act (“FAA”) to dismiss a case rather than staying the case once the court determines that the claims are subject to mandatory arbitration under the FAA.

Scali Rasmussen has had a lively 2024 so far and it doesn’t look like we are slowing down anytime soon. We are busy attending to our loyal clients, as well as participating in industry and community events.

In California, employees are entitled to recover reasonable attorney’s fees if they prevail on claims against employers alleging violations of the Labor Code. In the recent Court of Appeal opinion in Gramajo v. Joe’s Pizza, a California Court of Appeal was faced with the issue of whether to award excessive attorney’s fees to an employee even though the amount of the verdict was nominal. As shown below, the Court of Appeal sent a message across the bow that excessive attorney’s fees may be recoverable irrespective of the amount of damages.

As most car dealers are aware , offers made pursuant to California Civil Procedure Section (“CCP”) 998 can be a useful tool to reign in the cost of settling consumer litigation. Section 998 is a cost-shifting statute designed “to encourage the settlement of litigation without trial, by punishing the party who fails to accept a reasonable settlement offer from its opponent.”

Have you or someone you know had an interest in real property on which there was a cloud on title – perhaps a competing claim of ownership or other rights to the property? Do you know of someone who bought real property only to learn that the property had been subject to a title dispute in the past? This article will explain the remedy of “Quiet Title” to resolve title disputes, and it will explain what happens to any subsequent purchaser’s rights – particularly in those instances when the Quiet Title judgement is reversed or set aside. The interesting case study included at the end of the article, if you chose to read it also, is a cautionary tale for those individuals caught up in quiet title situations.

The California Legislature enacted Civil Code Section 1952.7 to promote the installation of electric vehicle charging stations. Importantly, while commercial lessors are not required to install or maintain EV stations in California, the law prevents them from hindering lessees who wish to do so.

On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers.

Employers widely recognize that the Fair Employment and Housing Act (“FEHA”) imposes an affirmative duty on employers to make a reasonable accommodation for the known disability of an employee or applicant unless doing so would impose undue hardship to the employer's operations. California Government Code 12026(m). Determining the nature of the accommodation is a case-by-case process that requires individualized review based on the employee’s limitations and the nature of the employee’s essential duties. This can be a daunting task for employers, and diligent employers, who are accustomed to bearing the administrative and compliance burdens of fulfilling their EEO obligations, may be inclined to take decisive and unilateral action in response to receiving notice of an employee’s need for an accommodation.

The Corporate Transparency Act (“CTA”) has been a point of contention between the United States Federal Government and small businesses, evidenced by the lawsuit brought by the National Small Business Association (“NSBA”) on behalf of its members. While the Northern District of Alabama recently prohibited the Financial Crimes Enforcement Network (“FinCEN”) from enforcing the CTA against the NSBA’s members, the court’s order does not appear to apply to non-NSBA members and the US Department of Justice has signaled its intent to appeal the decision. Thus, despite these new developments on the enforcement of the CTA, it is critical that dealers comply with the requirements of the CTA.

California’s Office of Environmental Health Hazard Assessment (“OEHHA”) is the agency responsible for regulating Proposition. In October of 2023, OEHHA published a Notice of Proposed Rulemaking, proposing amendments to existing sections of the safe harbor warning regulations for consumer product exposures.

There have been several developments in 2024 pertaining to California’s privacy laws. Specifically, the California Privacy Protection Agency (“CPPA”) – the agency that enforces the CPRA - won the battle in an important court case that allows it to begin immediate enforcement of its revised CPRA regulations. In addition, the California Attorney General’s office (“AG”) announced its second-ever enforcement decision under the CPRA and further advised that it would continue with its enforcement “sweeps.”

At Scali Rasmussen, we are committed to our employee’s total wellness, and we believe mental health, is health.

Christian Scali has been recognized by Los Angeles Business Journal as one of the "Top 100 Lawyers of Los Angeles for 2024." The award honors attorneys who "have demonstrated exceptional legal skill and achievements across the full spectrum of responsibility, exemplary leadership and contribution to the Los Angeles community at large," states the publisher.